As Michigan lawmakers grapple with how to create jobs and a positive business climate, new tax reforms shouldn’t stall the economic progress we’ve already made.

A perfect example of this is the proposed personal property tax reform and its impact on Michigan’s wind industry. Wind energy projects are under way in all regions of the state, from the Upper Peninsula to the Thumb and across several portions of western and central Michigan. According to the American Wind Energy Association, at least 31 facilities statewide manufacture components for the wind energy industry and an additional six facilities are planned.

In Saginaw, the Merrill Technologies Group has made a significant investment in the manufacturing of turbines. In Monroe, Ventower Industries opened the state’s first wind tower manufacturing facility on a former brownfield site. Estimates are that Ventower may eventually employ as many as 300 people.

Much of this progress is due to the current tax system, which has provided revenue from wind energy projects to local governments and made the projects appealing to local communities.

Recent changes regarding wind equipment depreciation schedules under the current tax system and proposed restructuring of the overall personal property tax system could undermine local support for wind energy projects. This could make it more difficult for Michigan to reach its goal of having 10 percent of its energy from renewable sources by 2015.

Fortunately, there are several options that could maintain local revenues for wind projects, and even improve the efficiency of the current system. This could include the development of a separate wind generation-type tax or redefining how wind facilities are classified under the personal property tax system, as was proposed in the eight-bill personal property tax reform package that recently passed the Senate Finance Committee. Policymakers should also consider approaches that do not require ongoing estimates of the asset value to create more predictable tax revenue and streamline the process.

Community leaders across the state should feel confident that wind energy can provide not only a stable base of tax revenue but — perhaps more important — a steady source of employment for the next generation and beyond.

As lawmakers continue to debate personal property tax reform and look to create jobs and improve our business climate, we urge them to identify all industries where growth is taking place to avoid unintended consequences.